Listing ID: 66650
For over twenty years, this company has been providing quality products and professional installations within a specific segment of the home services industry. Since 1999, the company has continued to grow and has developed an expert sales model, along with a production team that has carried the firm to steadily increased growth. Having once worked in the production side of the business, the Sellers are now maintaining the books and providing operations oversight. They also own the current facilities that they operate from and designed an award-winning showroom. They pay themselves a market rent. Ideally the Seller would like to sell the facilities with the business-this should provide an attractive deal for an SBA lender. The business is also one of the area’s largest dealers of a well-known and desired product line. If you are looking for a profitable service business opportunity that is easy to learn, has a good team, and a proven income producing property as well…then look no further and inquire today on this rare opportunity. All inquiries will be expected to execute an NDA before receiving details.
- Asking Price: $1,275,000
- Cash Flow: $440,192
- Gross Revenue: $1,954,747
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $250,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,500
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Facilities are close to major transportation corridors and is easy to access. The seller owns the facilities and leases to the business for approximately $60k in gross rents for a 4500sq ft building with office, warehouse and showroom space. The property also includes secure storage for the company vehicles. The seller is expecting to sell the property in addition to the business.
Seller will train and transition Buyer to help support success
There is competition but mainly as small franchises or low service big box stores. The advantage that this business has is the years of reliable and competent service they’ve provided to their community. They also have some product manufacturer exclusives and are one of the area’s largest dealers of a very well-known and popular brand.
The seller kept the business to a single location. There is great potential to open other locations using the same business model by expanding capacity & increasing a market presence in neighboring cities throughout the South Sound.
The business was established in 2000, making the business 22 years old.
The deal shall not include inventory valued at $250,000*, which ins't included in the asking price.
The company has 4 employees and resides in a building with approx. square footage of 4,500 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell companies. However, the genuine factor and the one they tell you might be 2 absolutely different things. As an example, they may say "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may just be justifications to attempt to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or an array of other reasons. This is why it is extremely vital that you not depend entirely on a vendor's word, yet rather, make use of the vendor's response in conjunction with your general due diligence. This will repaint a more realistic image of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans so as to cover things like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too small. Many companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that need to be fulfilled or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract brand-new consumers? Many times, companies have repeat clients, which create the core of their daily revenues. Specific factors such as new competition growing up around the location, roadway building, and employee turnover can impact repeat clients as well as adversely affect future profits. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business on a regular basis, the higher the possibility to develop a returning consumer base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Exactly how might the regional median house income influence future earnings potential?